# Facebook parent Meta is preparing large-scale layoffs this week – WSJ
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-07
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Meta Platforms to Begin Large-Scale Layoffs This Week
Meta Description: Meta Platforms Inc is set to announce significant layoffs affecting thousands of employees. Costs to rise next year amidst competitive challenges.
URL: https://financedigest.com/facebook-parent-meta-is-preparing-large-scale-layoffs-this-week-wsjhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-06t222322z2lynxmpeia5096rtroptp4tech-meta-1736814909312-compressed.jpg)

(Reuters) – Meta Platforms Inc is planning to begin large-scale layoffs this week that will affect thousands of employees, the Wall Street Journal reported on Sunday citing people familiar with the matter, with an announcement planned as early as Wednesday.

Meta declined to comment on the WSJ report.

Facebook parent Meta in October forecasted a weak holiday quarter and significantly more costs next year wiping about $67 billion off Meta’s stock market value, adding to the more than half a trillion dollars in value already lost this year.

The disappointing outlook comes as Meta is contending with slowing [global economic](https://www.financedigest.com/global-economic-crisis-strangling-progress-for-poor-warns-u-n-development-chief.html "Global economic crisis strangling progress for poor, warns U.N. development chief") growth, competition from TikTok, privacy changes from Apple, concerns about massive spending on the metaverse and the ever-present threat of regulation.

Chief Executive Mark Zuckerberg has said he [expects the metaverse investments](https://www.financedigest.com/uks-dominos-expects-tech-investments-to-hit-2023-profit.html "UK’s Domino’s expects tech investments to hit 2023 profit") to take about a decade to bear fruit. In the meantime, he has had to freeze hiring, shutter [projects and reorganize teams to trim costs](https://www.financedigest.com/britain-delays-major-rail-project-hs2-as-costs-soar-again.html "Britain delays major rail project HS2 as costs soar again").

In 2023, we’re going to [focus our investments on a small number of high priority growth areas](https://www.financedigest.com/three-areas-of-focus-for-financial-service-cisos-in-2022.html "Three areas of focus for Financial Service CISOs in 2022"). So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the [next year](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns"). In aggregate, we [expect to end](https://www.financedigest.com/spain-expects-to-agree-with-banks-mortgage-relief-measures-by-end-of-week.html "Spain expects to agree with banks mortgage relief measures by end of week") 2023 as either roughly the same size, or even a slightly smaller organization than we are today” Zuckerberg said on the last earnings call in late October.

The social media company had in June [cut plans](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year") to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn.

[Meta’s shareholder Altimeter Capital Management in an open letter to Mark Zuckerberg had previously said the company needs to streamline by cutting jobs](https://www.financedigest.com/meta-to-cut-10000-jobs-in-second-round-of-layoffs.html "Meta to cut 10,000 jobs in second round of layoffs") and capital expenditure, adding that Meta has lost investor confidence as it ramped up spending and pivoted to the metaverse.

Several technology companies, including Microsoft Corp , Twitter Inc and Snap Inc have cut jobs and [scaled back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") hiring in recent months as global economic growth slows due to higher interest rates, rising inflation and an energy crisis in Europe.

(Reporting by Mrinmay Dey in Bengaluru; editing by Diane Craft)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---